Which of the following statements BEST describes full-cost pricing?
A) It allocates only those fixed costs that can be directly attributed to production.
B) It explicitly considers demand and competition.
C) It uses all relevant variable costs in setting the product's price.
D) It relates overhead expenses to expected revenue.

Question

Quizplus · Accepted Answer

Full-cost pricing involves using all relevant variable costs, as well as fixed costs, to determine the price of a product. It ensures that all costs are covered in the pricing strategy.

Which of the Following Statements BEST Describes Full-Cost Pricing